We recently visited Savannah Resources’ 75% owned Mina do Barroso lithium project in Portugal and were impressed with the broad zones of shallow and gently dipping lithium-bearing pegmatites across the entire project area. Savannah’s tenement package comprises four highly prospective lithium projects covering some 1,042km2 within a regional structural corridor. We also like the fact that Mina do Barroso has a valid mining licence to 2036, although amendments will be required for the extraction of additional material and potential building of a lithium processing plant. In addition, we note that the project has excellent infrastructure with access to power, water, roads and a port.
Grandao deposit: means big in Portuguese….
A maiden resource estimate from the Grandao deposit is expected during Q1 2018. To date, 61 RC holes have been drilled comprising approximately 5,000m. Assay results have returned significant intercepts with up to 109m grading 1.04% Li2O including 52m grading 1.32% Li2O. The current drilling programme has defined mineralisation to over 400m in length, up to 300m in width and mineralisation up to a depth of 185m. Preliminary metallurgical testwork confirms spodumene concentrate can be produced using conventional processing technologies.
Reservatorio: JORC-compliant inferred resource of 3.2Mt grading 1.0% Li2O
The maiden inferred resource estimate for Reservatorio underpins the significant potential of the Mina do Barroso lithium project as a source for spodumene concentrates. A core rig is currently being mobilised to site and will provide samples for more detailed metallurgical testwork. Infill drilling will be required to prove up the resources to the Indicated category.
Other projects: update on mining licences
Savannah has a combined JORC-compliant resource for Lasail (Block 4) and Mahab 4 (Block 5) deposits in Oman of 1.7Mt grading 2.2% Cu. EM surveys confirm potential for extensions at both deposits and management is aiming to lift the resource classification and add tonnage to the high-grade and disseminated copper sulphide zones. An application for a mining licence has been submitted and the
company has initiated the required EIA study.
Savannah is the operator and holds a 20% interest in the Mutamba heavy mineral sands project in Mozambique. Subject to key milestones, the Company can earn up to a 51%. On aggregate, the current resource for the Mutamba stands at 4.4Bt grading 3.9% THM (total heavy minerals). Following commissioning of a pilot plant in Q4 2017, Savannah has submitted three mining lease applications covering the Jangamo, Dongane, Ravene and Chilubane deposits.
